Latest news with #weak demand
Reuters
2 days ago
- Business
- Reuters
Hit by Trump tariffs, Thyssenkrupp cuts sales and investment forecasts
FRANKFURT/DUSSELDORF, Aug 14 (Reuters) - German conglomerate Thyssenkrupp cut its full-year sales and investment forecasts on Thursday, blaming weak demand for its products as U.S. President Donald Trump's import tariffsdisrupt global trade in autos, machines and building materials. Weakness among automotive clients, who account for around a third of Thyssenkrupp's customer base and are being hit by U.S. import levies, was a major factor in the decision, as well as lower than expected third-quarter profits, the group said. "Trade disputes had a significant impact on our quarter and also left some skid marks in macroeconomic terms," Chief Financial Officer Axel Hamann said. "Many companies, especially customers, are waiting to see what happens or are taking a cautious approach," he told journalists. The company, with a broad portfolio that includes steelmaking and submarine production, now expects sales to fall by 5% to 7% during its fiscal year to September 30. It previously expected sales to drop by up to 3%. Investment plans were cut to between 1.4 billion and 1.6 billion euros ($1.6-$1.9 billion), from 1.6-1.8 billion euros. Thyssenkrupp said the introduction of tariffs had curbed international trade and hit global supply chains, and that things could get worse should the Israeli-Palestinian conflict in the Middle East escalate further. "The past quarter was characterised by enormous macroeconomic uncertainty," CEO Miguel Lopez said. Shares in the company, which is in the process of spinning off its submarine division TKMS in October, were 8.8% lower at 1045 GMT. Full-year adjusted earnings before interest and tax are now forecast to be at the lower end of the 0.6 billion to 1 billion euros guidance range, the company said. In its fiscal third quarter from April to June, adjusted EBIT rose 4% to 155 million euros, missing the 174 million average estimate in an analyst poll provided by the group. ($1 = 0.8544 euros)
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
China's New Yuan Loans Drop Unexpectedly
China's new yuan loans dropped unexpectedly in July, sending yet another sign of weak demand in the economy despite Beijing's efforts to bolster domestic demand. A measure of new yuan loans shrank by 50 billion yuan last month, according to official data released Wednesday by the People's Bank of China, suggesting that borrowers rushed to repay funds. It marked the first such decline in about 20 years.
Argaam
4 days ago
- Business
- Argaam
Aslak faced fierce price war in Q2 2025, sees gradual demand recovery: CEO
United Wire Factories Co. (Aslak) faced a sharp pricing competition in Q2 2025 amid weak demand, which prompted producers to cut prices to protect their market shares, CEO Nabil Al-Amir told Argaam. In Q2 2025, sales volumes rose by about 40% year-on-year (YoY), but the average gross profit margin fell 31%, leading to a 55% drop in the three-month net income. According to the CEO, Aslak witnessed higher sales in the second quarter of this year on elevated sales volumes. This was fueled by stronger marketing efforts and competitiveness. However, demand stayed relatively weak, demonstrating no signs of a material rebound. Elsewhere, capacity utilization rates improved in Q2 2025 and are still on the rise, thanks to higher sales volumes. Further, efforts to maximize utilization rates are ongoing. Al-Amir expects demand to recover gradually by late Q3 2025, driven by the end of summer holidays and the start of work on some mega projects. This is bound to underpin local economic activity and boost demand for Aslak's various product lineups.
